Members in attendance

Committee in brief

The House of Commons Standing Committee on Finance met Tuesday to continue the study on tax incentives for charitable donations but the conversation quickly turned to Canada Revenue Agency regulations, political advocacy, and the budget implementation act (Bill C-38). Witnesses from CanadianCharityLaw.ca and Charity Intelligence Canada focused on the need for increased transparency in the charitable sector and greater authority for the Canada Revenue Agency in dealing with illegitimate charitable activities such as tax evasion and the issuing of fraudulent tax receipts. While committee members pressed them to take a side on charitable political activity and foreign funding of Canadian environmental groups, witnesses maintained that these issues are secondary to the issue of public trust in charitable organizations.

Witnesses from the Canadian Diabetes Association, Food Banks Canada, and the Women’s College Hospital Foundation all stated their support for the popular stretch tax credit for charitable giving. Witnesses also put forth a range of additional recommendations including a higher charitable tax credit on all donations over $500 to a single charity, a charitable food tax credit for food manufacturers who donate to food banks, the expansion of the capital gains exemption to private shares and real-estate, and mobilizing private capital for public good through social enterprise initiatives.

Questions from the government members focused on alleged charitable tax evasion schemes and increased CRA authority. Opposition members focused on the importance of political advocacy within charities. The committee also asked for more information about social enterprise and how a regulatory balance must be achieved to reconcile profit initiatives and the promotion of social good

More details? Find out in the Alpheus Group Committee Snapshot. Same day overview of testimony, summary of questions & answers and highlights of committee decisions.